Rio Tinto Mulls Sale of New Zealand Iron Sands

By

Rhiannon Hoyle

Mar 14, 2013 8:24 am EDT

Rio Tinto PLC is considering the sale of its New Zealand iron sands assets, signaling a cooling interest in a technology that once promised to tap large supplies of the steelmaking material under the sea.

The move comes as Rio Tinto–the world’s second-largest producer of iron ore after Brazil’s Vale SA–seeks to sell small assets or costly operations and focus on more profitable mines after posting its first ever annual loss. New chief executive Sam Walsh has responded to slowing commodities demand by putting a greater emphasis on shareholder returns.

A spokesman for Rio Tinto said Perth-based Azure Capital is advising on its options for the New Zealand iron sands assets, including a possible sale, as part of a global review of its assets.